Blog

Dec 25

The Chicken or the Egg?

Who comes first: employees or customers? When posed this classic business question, Southwest Airlines co-founder Herb Kelleher had an easy answer: employees. “If employees are treated right, they treat the outside world right,” Kelleher explained. As Kelleher knows well, employee-customer relations are a cycle — one that fuels recurring business. Engaged employees deliver service that converts to sales, a fact backed up by a Gallup report. Gallup cited a 20 percent increase in sales as a result of this process.

Even as you’re courting leads, you can’t ignore your existing customers. Likewise, even (and especially) as you grow, you have to nurture your employees. The cost of losing either is too high. In the holiday rush, it’s important to not lose sight of your priorities.

Get them hooked on your service.Have you ever asked a client why they return to your business? Do you think it’s because they can’t find your product or service anywhere else? Probably not. Think about the last time you returned to a restaurant. Was it because it’s the only place in town that makes amazing Thai food? Maybe, but it’s more likely that you enjoyed the welcoming host, attentive waiter, and positive experience you had there.

Starbucks is a great example. Even with thick competition, they deliver consistent service and quality products to customers, whether in Oregon or London. And they do this by providing competitive wages and benefits to their employees along with training and learning opportunities. Employees who are knowledgeable and excited about what they are offering pass their enthusiasm on to customers.

Own up to mistakes.Even the best businesses make mistakes. When it happens, own up to it. There’s probably been a time when you put in your order at a restaurant, only to receive the wrong thing. How did the business handle it? Did they admit their mistake and offer you a new meal? How a business treats customers when things don’t go smoothly is a good indication of how they’ll handle adversity in general, and that reaction starts with employees. Set the precedent for employees that a mistake is their opportunity to go above and beyond.

A transparent environment will make employees feel more comfortable, which will make customers excited, rather than apprehensive, to engage with your business again.